Taylor Wimpey has released its climate transition plan, which includes a headline goal for net-zero by 2045 under the SBTi’s net-zero standard. The plan also outlines several interim targets, including net-zero operational emissions by 2035. Taylor Wimpey is exploring various approaches to neutralize emissions, including nature-based solutions, engineered solutions, and hybrid solutions. The company plans to update the transition plan at least every three years and has expressed its willingness to work with key material suppliers and large groundwork contractors to explore material innovations and more efficient options for carrying out processes.
The Institutional Investors Group on Climate Change has released new guidance to help investors select infrastructure firms with credible net-zero plans and engage with existing companies and projects in their portfolios. The guidance recommends that investors look for firms and projects with net-zero targets that cover all emissions scopes and include interim targets in line with climate science. The guidance also emphasizes the importance of progress and provides information on how investors can engage with companies to obtain emissions performance data.
The IIGCC has confirmed the second phase of its workstream on measuring and reducing climate-related risks to the infrastructure sector. The workstream will cover physical risks to assets, higher project capital costs, supply chain disruption, and valuation risk due to nearby physical risk.
Taylor Wimpey, a UK-based housebuilding company, has published its climate transition plan and committed to achieving a science-based net-zero goal by 2045. This goal is in line with the SBTi’s net-zero standard, which requires businesses to decrease absolute emissions across all scopes by at least 90% by 2050. Additionally, the company’s plan includes other interim targets, such as net-zero operational emissions by 2035.
The transition plan also outlines the financials involved in this journey towards net-zero. The company expects that measures to decrease operational and power-related emissions will result in a small net cost. The cost efficiencies from reduced energy use are expected to offset the required expenditure. However, reducing indirect emissions (Scope 3) will likely be more expensive. Taylor Wimpey’s absolute emissions footprint is dominated by Scope 3 emissions, with the bulk coming from purchased goods and services.
The company’s transition plan breaks down its journey to net-zero into four stages. The first stage, from 2019 to 2025, prioritizes improving the energy efficiency of all homes and procuring renewable electricity for new sites. The company is also researching alternatives to diesel generators and planning to decarbonize the supply chains of key materials. By 2026, Taylor Wimpey aims to procure 100% renewable electricity for all its operations and sites, and it will have phased out diesel generators.
The second stage, from 2026 to 2030, includes plans to increase the use of timber frames and pilot new low-carbon materials. The materials contributing significantly to the company’s emissions footprint are concrete, asphalt, bricks, and steel. Taylor Wimpey is exploring innovations such as concrete without Portland cement, blocks with higher air content, and asphalt that can be applied at lower temperatures. The company is already working with key material suppliers and large groundwork contractors to explore these material innovations and more efficient options for carrying out processes. In the future, this will be extended to other material suppliers, including smaller firms.
In summary, Taylor Wimpey has set ambitious goals to achieve net-zero emissions by 2045 and has outlined a detailed transition plan. The plan includes several interim targets and focuses on reducing operational, power-related, and indirect emissions. Additionally, the company is exploring innovations in materials and processes to achieve its climate goals.
According to Taylor Wimpey’s climate transition plan, the company plans to accelerate research into carbon capture and storage solutions in the 2030s and 2040s. It is highly likely that removals will be necessary to neutralize operational emissions in 2035 and beyond, and from 2045 for Scope 3 emissions. Taylor Wimpey aims to explore a range of approaches for neutralizing emissions, including nature-based solutions, engineered solutions, and hybrid solutions. The plan states that these approaches will be assessed based on environmental merits, supply and demand, pricing, and technological readiness.
The report also highlights that some of Taylor Wimpey’s emissions could be ‘inset,’ meaning they could be neutralized by nature-based solutions at large development sites and surplus land. The UK Government’s updated guidance on transition planning includes information on nature.
Taylor Wimpey plans to update its transition plan at least every three years, in line with current UK Government advice. While producing transition plans is not yet mandatory in the UK, soon it will be for large businesses in the highest-emitting sectors. The Transition Plan Taskforce has recommended that companies should publish one transition plan this year, followed by an update in 2026, with information material to the plan included in financial reporting in 2024 and 2025.
In other news, the Institutional Investors Group on Climate Change (IIGCC) has released new guidance to help investors select infrastructure firms with credible net-zero plans and engage with existing companies and projects in their portfolios. The guidance recommends that investors look for firms and projects with net-zero targets that cover all emissions scopes and include interim targets in line with climate science. The guidance also emphasizes the importance of progress and provides information on how investors can engage with companies to obtain emissions performance data.
The IIGCC has confirmed the second phase of its workstream on measuring and reducing climate-related risks to the infrastructure sector. The workstream will cover physical risks to assets, higher project capital costs, supply chain disruption, and valuation risk due to nearby physical risk. The IIGCC’s CEO, Stephanie Pfeifer, has expressed her satisfaction with the number of investors following the guidance and encouraged others to do the same. The decarbonization of infrastructure globally is essential to achieving net-zero, and investors play a pivotal role in this asset class. The infrastructure sector is also critical in building resilience to physical impacts of climate change such as floods and heat.
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